Bipartisan Momentum Builds in Washington to Protect Consumers from Fraud and Scams
Online scams are costing Americans billions each year — $16.6 billion in 2024 alone, to be exact — and Washington is finally taking meaningful steps to fight back.
Earlier this month, Senators Ruben Gallego (D-AZ) and Bernie Moreno (R-OH) introduced the Safeguarding Consumers from Advertising Misconduct (SCAM) Act, bipartisan legislation that would require social media companies to do more to stymie the growing flood of fraudulent ads on the social media platforms Americans use daily. Just last week, Reps. Dan Meuser (R-PA) and Lou Correa (D-CA) introduced companion legislation in the House, signaling a growing focus from policymakers to better protect Americans from bad actors online.
This momentum is greatly needed. According to studies by Pew Research Center, 73% of U.S. adults report having experienced some form of online scam or attack. These occurrences range from counterfeit online purchases, to phishing emails or text messages, to fraudulent investment and cryptocurrency schemes, and even impersonation scams where criminals pose as government officials, trusted companies, or loved ones to trick victims into sending money or sharing sensitive information. Far too often, Americans face these scams more than once.
The SCAM Act would crack down on these types of crimes by:
Requiring social media companies to verify the identity of paid advertisers before ads run on their platforms
Establishing clearer accountability for platforms that fail to prevent or profit from fraudulent advertising
Strengthening the Federal Trade Commission’s and states’ ability to enforce violations of consumer protection laws
If passed, the legislation would mark a major leap in the fight against the fraud and scam epidemic that consumer protection organizations across the country have been sounding the alarm bell on. Next American Era is proud to join the likes of AARP and the Consumer Federation of America among a broader coalition of advocates, anti-fraud organizations, and public interest groups in support of this bill.
Too many Americans have seen their hard-earned savings stolen by scammers exploiting social media platforms to launch multi-billion dollar schemes. This legislation isn’t about blaming an industry that’s delivered real benefits; it’s about accountability — putting common-sense safeguards in place to protect Americans and stop criminals where they operate. If Washington is serious about consumer protection and the financial security of working families and seniors, it needs targeted federal standards and enforcement. The SCAM Act is a pragmatic first step.